Income Tax Assessment Act 1997
You can choose to obtain a roll-over (whether or not the transferor and transferee choose to obtain a roll-over, and even if *CGT event J4 applies) if:
(a) you own units or interests in the transferor (your original interests ); and
(b) the ownership of all your units or interests ends under a trust restructure in exchange for *shares in the transferee (your replacement interests ).
The roll-over consequences are set out in Subdivision 124-A . The original assets are your units and interests in the transferor. The new assets are your shares in the transferee.
The effect of the roll-over may be reversed if the transferor does not cease to exist within 6 months: see section 104-195 .124-870(2)
You must make the choice for each of your original interests. 124-870(3)
An entity that is a foreign resident cannot choose a roll-over under this section unless the replacement interests the entity *acquires in the transferee are *taxable Australian property just after their acquisition.
If you choose a roll-over, you cannot make a *capital loss from a *CGT event that happens to your original interests during the *trust restructuring period.
The rule in subsection (4) prevents a capital loss arising on your units or interests after the trust assets have been disposed of to the company but before your shares are issued to you.Exception: trading stock 124-870(5)
This section does not apply to your ownership of an original interest ending if:
(a) the interest was an item of your *trading stock and the corresponding replacement interest becomes an item of your trading stock when you *acquire it; or
(b) the interest was not an item of your trading stock but the corresponding replacement interest becomes an item of your trading stock when you acquire it.